Thought Leadership Series

A Legacy of Innovation Drives Technical Transformation for the (U.S.) State of DelawareThe State of Delaware, Department ofTechnology and Information (DTI)September 2008

DTiDELA

WA

RE DEPARTMENT OF TECHNOLOGYANDINFORMATION

Table of Contents Executive Overview

Introduction: Delaware, “The First State”

Challenges Facing the Public Sector

Important Trends in the Public Sector: Technology Initiatives

State of Delaware: Addressing the Challenges with a Technology-Centric Approach

Benefits of the Oracle Solution

Success in the State of Delaware: iGovernment in Action

Conclusion: Transformation Powered by Technology, Recognized by Industry

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Public sector organizations are facing many of the same challenges they’ve always faced. State governments, in particular, continue to struggle with tightening budgets, ever-increasing demands for a wider array of services, and fluctuating revenue bases. However, new challenges in the form of heightened constituent expectations regarding quality and timeliness of services and a rapidly aging employee population have further stressed states’ capabilities to operate efficiently and effectively. The State of Delaware is not exempt from these challenges. Like other states, its goal is to streamline operations and reduce costs while providing better service to its citizens. In 2006, true to its roots of being on the forefront of innovation, the State embarked upon a comprehensive iGovernment initiative designed to transform its manual, inefficient operations into operations that are intelligent, innovative, and integrated. With the help of Oracle, and supported by Oracle technologies, the State successfully completed 15 projects in the first year of the initiative and is currently working on more than 25 others. In addition to winning numerous awards recognizing its achievements, the State is now an acknowledged technology leader among state and local governments.

Executive Overview

Department of Technology and Information (DTI)

Enabling excellence in Delaware State Government

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DTI’s Mission Statement

To provide leadership in the

selection, development, and

deployment of technology

solutions throughout the

State of Delaware

DTI’s Key Goals

•Continuously improve the

delivery of excellent services to

our customers

•Promote and facilitate the sharing

of IT resources and practices in

order to maximize collaboration

and minimize the duplication of

costs and efforts

•Ensure the physical and cyber

security of people, facilities,

and information

Introduction: Delaware, “The First State”

The State of Delaware, known as the “The First State” because it was the first state to ratify the U.S. Constitution, has garnered a reputation for being first in other ways among state governments. Although geographically small relative to its 49 peers, Delaware is the seventh most densely populated state. Known for its business-friendly environment, more than half of the publicly traded U.S. organizations, and 60 percent of Fortune 500 companies, have incorporated in Delaware.

Several technology “firsts” have established Delaware’s reputation as a technology leader in both the commercial and the public sector. For example, it is addressing the “digital divide” by enabling citizens without internet access to retrieve public information from the Web via their telephones. Successful programs such as “Courts Organized to Serve,” “One Stop,” and “Delaware Employment Link” have intelligently addressed critical citizen-centric issues, while also advancing the State’s business-friendly mandate. And a recently implemented, statewide identity and access management system will provide the State with an intelligent technology infrastructure to more effectively and efficiently execute its strategic vision.

The overarching goals of the iGovernment initiative were to implement information systems that would support the State’s technological transformation in ways that were intelligent, innovative, and integrated.

Intelligent. The State began its transformational journey by making intelligent decisions regarding human resources (HR) management. Realizing that a significant proportion of its 36,000 employees were expected to retire in the next few years, it identified the pending effect on operations. By implementing information systems that enable its human capital management employment processes to bridge the anticipated workforce gap, the State is better prepared to manage the impact of this expected shift in employee demographics.

Innovative. The State has also used information technology (IT) in innovative ways that are more typically found in commercial entities—for example, by centralizing and consolidating its fragmented, legacy IT capabilities. The State developed a dedicated Center of Excellence for each IT project, and hired the best and brightest IT personnel using comparable market compensation.

“The State of Delaware’s biggest strengths are our people, technology,

management commitment, and the strategic relationship with Oracle.

These strengths have enabled us to serve our citizens and businesses

through our innovative approach, integrated platforms, and intelligent

use of technology.”

Thomas Jarrett, Cabinet Secretary and Chief Information Officer, State of Delaware

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“In today’s environment, we need to continually improve our internal and

constituent-facing processes through innovation, integration, and better

business intelligence.”

Lynn Hersey-Miller, Chief Program Officer, Department of Technology and Information, State of Delaware

Integrated. Delaware’s success is based on its ability to identify and execute key integration opportunities. This became apparent when the State centralized IT operations in a newly formed Department of Technology and Information (DTI). It also instituted an IT capital-planning methodology that aligned operational and business outcomes to support the State of Delaware’s strategic transformation initiative. Technical reviews undertaken as part of the assessment process for IT initiatives underscored the architectural opportunities of enterprisewide integrated solutions, thus reducing redundancy and noncompliant solutions.

Oracle has been a proven partner throughout the process of achieving these goals. Today, the State of Delaware is run on an Oracle Database. In addition, all three branches of government run Oracle’s PeopleSoft Enterprise, which allows the State to track and manage its business processes based on established best practices in organizational performance management. Further building upon its success, the State is currently implementing PeopleSoft Financials, to provide a solid financial management foundation that seamlessly integrates with HR and other systems.

Challenges Facing the Public Sector

Public organizations such as the State of Delaware face four key challenges: creating a truly transformational government, meeting heightened constituent expectations, managing workforce transition, and minimizing the risks of implementing new technologies.

Creating a Truly Transformational Government

Transformational government involves a significant, if not radical, re-envisioning of the roles, goals, and objectives of government in serving not only its constituents, but also society at large. In traditional governments, the changes in leadership and personnel that tend to happen routinely in an electoral-based environment are frequently coupled with fluctuating economic cycles, societal pressures, and other internal or external influencers. The result of this constant and continuous leadership flux frequently manifests itself in a

Awards for the State of Delaware

•2008: For the second consecutive

year, the State of Delaware’s Web

sites were ranked the best in the

nation in a Brookings Institution

survey of government Web sites—

placing the State above almost every

federal agency in the country

•2007: Brown University’s analysis

of U.S. e-government initiatives

named Delaware the leading state

in effective use of Web-based

technology

•2007: Information Security Executive

of the Year, Mid-Atlantic Finalist,

was the State of Delaware CIO,

Thomas Jarrett

•2006: NASCIO Meritorious Service

Award: CIO Thomas Jarrett

•2005: CIO Magazine “The Bold 100”

Award (for Innovation, Leadership,

and Precise Execution) to DTI (the

only State agency in the country to

receive the award)

•2005: The Center for Digital

Government’s “Best of the Web”

awarded Delaware’s Web site top

place as the best state portal

•2003: Accenture and MIT Digital

Government gave DTI the award for

outstanding pilot/prototype of an

e-government project

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short-term focus and a lack of medium- and long-term strategic plans. In such cases, governments—and the political parties in power—have the incentive to invest scarce resources only in initiatives that are likely to succeed during their tenure, thereby positioning themselves for the next election or upheaval. This short-term view negatively impacts sustainability—both of the core mission and of the particular initiative—as resources for program initiatives contract and expand.

Meeting Heightened Constituent Expectations

As constituents grow increasingly savvy about technology, they have a higher expectation for better service. Some of these expectations are more realistic than others. For example, in Gartner’s 2005 report, Government in 2020: Taking the Long View,1 it predicted that governments will not fully succeed in meeting constituents’ desire for a “single form of contact,” despite the fact that the underlying technology that enables it is robust and proven. However, reducing service complexity and turnaround time are both achievable and measurable goals—as is creating a single record or set of data per constituent that can be accessed via multiple channels and organizations. Governments need to find ways to harness technology to meet these heightened expectations.

Managing Workforce Transition

One of the key challenges facing the public sector is the aging workforce and its impact on the strategic planning process. By some estimates, up to 50 percent of the public sector workforce is eligible for retirement within the next few years. Although these numbers may vary across the public sector, multiple studies have shown that the public sector is more exposed to the problem of workforce transition than private enterprises—often due to competition for workers from private sector employers. The ability to recruit and retain employees is becoming even more critical to government organizations’ medium- to long-term operational plans. And because the organizational imperatives and technological enablers in the public sector are moving closer to those in the private sector, the skills needed to manage major governmental initiatives are increasingly scarce.

1 Gartner, Inc., Government in 2020: Taking the Long View, December 20, 2005.

Minimizing Technological Risk

A recent article in The Economist2 painted a not uncommon scenario observed in electronic government projects: Political leaders announce a revolutionary scheme with loud fanfare. Inexperienced civil servants draw up a tender and award it to the lowest (but probably not the most competent) bidder. Work starts, but political pressure causes the specifications of the project to change. Costs spiral, disillusionment grows, and the project either limps into life—infuriating everyone by its poor performance—or is expensively buried.

At the heart of this scenario is the failure of stakeholders to realize that electronic government is not just about buying and installing computers. Rather, it involves actually redesigning the way a government works, and efficiently executing projects while actively managing change.

Important Trends in the Public Sector: Technology Initiatives

Some emerging trends in the private sector may help break the politicized cycle and short-term pressures in the public sector as well. The se include the application of Lean manufacturing processes to public sector activities, the increased use of off-the-shelf software applications, the sharing of services among different government entities, and the use of business intelligence technologies and techniques to analyze complex data and thus make better decisions.

Lean Processes

Long embraced by the commercial manufacturing sector, Lean represents a systemic approach to addressing costs, quality, and customer service issues in public service institutions. According to McKinsey & Company,3 the impact of a Lean approach in such cases could be substantial. “Crucially for the public sector, a lean approach breaks with the prevailing view that there has to be a trade-off between the quality of public services and the cost of providing

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2 Edward Lucas, “Technology and Government: The Electronic Bureaucrat,” The Economist special report, February 14, 2008.3 Nina Bhatia and John Drew, “Applying Lean Production to the Public Sector,” The McKinsey Quarterly, June 2006.

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them.” The process of applying Lean techniques involves systematically analyzing operations over an extended period of time, thereby extending the horizon for analysis out of the short term and into the medium and long term.

Commercial Off-the-Shelf (COTS) Applications

The public sector has been largely successful at posting information on the Web. But attempting to provide interactive, online public services has been expensive and delivers poor returns. The three main reasons for this, as identified by The Economist (see footnote 2), are the lack of competitive pressure, a tendency to reinvent the wheel, and a focus on technology rather than on organizational transformation. In the private sector, tight budgets for information technology tend to spark innovation. The public sector, unfortunately, has been taken in by over-priced, over-promised, and over-engineered customized systems. Using COTS software enables a departure from the traditional scenario of high cost with low return.

Shared Services

An important trend in the public sector is the rapid uptake in the use of shared services. This parallels the growing importance of shared services in the private sector. According to a 2005 Accenture study,4 85 percent of governments surveyed said shared services are, or will be, important to supporting their organization’s strategic goals. Furthermore, 66 percent of governments surveyed have already implemented shared services or are in the process of implementing them. Another 28 percent plan to implement shared services within the next three years. Only 6 percent have no plans to implement shared services.

Again, contemplating the tradeoff between short-, medium-, and long-term goals and time horizons, the fact that governments are considering strategic goals—let alone identifying shared services as a way to achieve them—highlights the fact that government agencies are looking at broader horizons. Specifically, government organizations are beginning to investigate how to design, implement, and optimize shared services along a number of parameters, using their core enterprise resource planning (ERP) infrastructures as backbones. This not only allows them to serve additional constituents to diminish marginal costs, but also lets them reallocate scarce resources to meet core mission objectives.

4 Accenture, Driving High Performance in Government: Maximizing the Value of Public Sector Shared Services, 2005.

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Business Intelligence

In addition to these operational models, a fourth important trend—the use of analytics, or business intelligence—is gaining mindshare in the public sector. Business intelligence has been widely adopted in the commercial sector and has been used in smaller parts of the public sector for some time. However, public sector organizations have become increasingly interested in applying analytics much more broadly, to enable “what-if” scenarios, analyses, and complex decision-making processes. Two key prerequisites to take advantage of this trend are data integrity and data integration. Without access to a single set of reliable source data, analytics has little value. This fact necessitates that virtually all operational processes be driven by ERP-based administrative systems.

State of Delaware: Addressing the Challenges with a Technology-Centric Approach

The governor and the Delaware General Assembly formally created the DTI in July 2001, as a replacement for the former state agency known as the Office of Information Services. The DTI was assigned the responsibility of building a new organization based on a true customer service culture, and a spirit of collaboration that would foster centralized technology leadership statewide. The DTI had a clear goal: to use technology as a strategic business tool for enabling the State’s 36,000 employees to more efficiently and cost-effectively deliver services to its almost 900,000 citizens.

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DTI’s vision is to lead the country in the innovative use of technology and business practices for enabling better government, and to satisfy citizens’ needs for cost-effective and secure services. To date, DTI has been able to successfully establish a new direction for the state that has created

• A customer-centric culture with a strong relationship to all stakeholders

• Service-oriented technology leadership with the ability to deliver projects on time

• A “business-smart” IT organization and an “IT-smart” business organization

This approach, as formulated by the DTI, has put the State of Delaware at the leading edge of the public sector trends outlined previously in this paper, as shown in the table below.

Public Sector Trends State of Delaware

Lean principles Long-term strategic plans and precise execution; continuous improvement and cost savings through technology and strategic investment decisions; innovative approach to organizational structure, business processes, and change management

Commercial off-the-shelf software

Oracle Database; Oracle Real Application Clusters; Oracle Application Server; Oracle Identity and Access Management; Oracle’s PeopleSoft Human Resources; Oracle’s PeopleSoft Financials; Oracle’s PeopleSoft Payroll for North America, IBM WebSphere; IBM Cognos

Shared services Shared services to support all three branches of govern-ment, as well as state departments, schools, and universi-ties; integrated planning and decision-making for projects

Business intelligence Movement toward integration of information, and business intelligence for intelligent decision support

A Technology-Centric Approach

•Lean principles: The State views

technology-enabled Lean principles

as a way of accomplishing its goals;

the management team has central-

ized its technology structure while

still providing different departments

and agencies with the flexibility

needed to operate effectively

•Commercial off-the-shelf soft-

ware: With Oracle’s help, the

State of Delaware implemented

its technology road map using

Oracle software

•Shared services: The DTI’s

shared-services model runs a

single instance of PeopleSoft

Enterprise for all three branches

of the government (executive,

legislative, and judicial), 19 school

districts, 17 charter schools, and

two higher-education institutions

•Business intelligence: The State’s

goal is to enhance the govern-

ment’s abilities to gather business

intelligence and perform appropri-

ate analyses to effectively support

the decision-making process of the

state’s executive and legislative

branches

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“We value our partnership with the Oracle team and look forward to working

with them to implement further PeopleSoft modules and to develop ways to

improve our approach to business processes.”

P.N. Narayanan, Senior Project Manager, Department of Technology and Information, State of Delaware

Benefits of the Oracle Solution

The rollout of these services has resulted in significant benefits to the State’s citizens and other stakeholders across a broad swath of functions, including human resources management, benefits administration, payroll, financial management, identity and access management, corporate governance, and technology.

Human resources management. Using PeopleSoft Human Resources, the State has transformed its human resources practices from administrative to strategic—automating common administrative tasks and enabling strategic management of processes. The enterprisewide human resources database supports numerous business processes, maintains historical records and job-related data, reports progress on critical HR functions, and facilitates better decision-making. It also enables easier management and documentation of the State’s labor and employee relations—including labor agreements, contracts, rosters, and seniority rules, among others—and has replaced home-grown, paper-based HR systems. DTI hosts PeopleSoft Human Resources for all state agencies, making Delaware the only state to serve all K–12 school districts using the same system.

Benefits administration. PeopleSoft eBenefits reduces costs by automating many of the benefits- and payroll-related administrative tasks. It provides employees with online access to benefits programs and enables them to communicate their benefit choices online, ensuring rules-based elections and changes, and automatically launches workflow and approval routing. Overall, it has eliminated redundant data entry and enables the State to manage nearly 100 benefit plans on a single system.

Time and labor. Using PeopleSoft Time and Labor, end users can easily enter time and other related transactions into the system, while managers can view, approve, commit, and export payable time directly into the pay sheets. Managers can also create flexible schedules, drill down into data, and gather reports in various formats. Automated integration with PeopleSoft Financials sends labor costs directly to the general ledger (GL), enabling easier project costing.

Payroll. PeopleSoft Payroll for North America is both comprehensive and flexible, and supports the rules, regulations, and processing requirements of organizations’ payroll departments. It provides regularly scheduled tax updates to keep the organization up-to-date with new regulations, easily handles multi-organizational processing, and provides direct-deposit

State of Delaware

Technology Solutions

Applications

•PeopleSoft Human Resources

•PeopleSoft Benefits Administration

•PeopleSoft eBenefits

•PeopleSoft Time and Labor

•PeopleSoft ePay

•PeopleSoft Payroll for North America

•PeopleSoft Financials

Middleware

•Oracle Identity and Access

Management

•Oracle Application Server

• IBM WebSphere

• IBM Cognos

Database

•Oracle Database

•Oracle Real Application Clusters

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functionality and check-printing capabilities. Customizable payroll reports include deduction registers, tax reports, deductions in arrears, employee earnings, and more.

Identity and access management. Oracle Identity and Access Management improves security at reduced cost by enabling automated user provisioning and deprovisioning, password management, and approval workflow. It also integrates comprehensive auditing, attestation, reporting, diagnostics, and separation of duties enforcement, making it easier and more affordable to meet compliance and privacy requirements. The software eliminates latency in changes to identity policy information, while protecting resources at the point of access. In addition, it delegates authentication and authorization decisions to a central authority to help enforce compliance.

Finance. Upon implementation, PeopleSoft Financials will enable the State to manage its people, finances, business assets, and operations more effectively, while allowing it to better respond to and meet the growing and changing needs of citizens and other stakeholders. It will help the State define financial targets, develop appropriate plans, and monitor costs and revenues in order to increase financial control and accountability, deliver business insight, and reduce the cost of the finance operation. In addition, the software will not only help managers perform tasks more efficiently, but will enable timely identification of risks.

Corporate governance. PeopleSoft Financials will also offer an objective view of the financial health of the State—to political leadership, the management team, employees, analysts, regulators, and auditors. Using PeopleSoft Financials, the State can ensure that reported facts, figures, and opinions fairly reflect the State’s performance, enabling it to better comply with statutory and regulatory reporting requirements.

Technology. The DTI has been at the forefront of the State’s effort to create a citizen-centric, performance-based culture. The DTI’s technology implementations have transformed the State’s information systems from stand-alone, disparate systems into integrated systems. In addition, the DTI has implemented standardized, user-friendly interfaces across systems; generated consistent, real-time information from integrated applications; and created business processes based on best practices. Other technology initiatives allow the State to achieve the following benefits.

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• Eliminate costly and inflexible legacy systems. Prior to the initiation of Oracle ERP solutions, the State possessed multiple legacy databases and applications. Replacing these difficult-to-maintain systems with a single integrated and updated system was not only efficient, but will allow the State to operate more cost-effectively in the future.

• Improve work processes. Oracle ERP applications incorporate best practice business processes—enabling the State to deliver constituent services more effectively and efficiently.

• Reduce manual processing and paper documents. By automating data collection, processing, and retrieval, the State reduced duplicative manual effort and paper use, thus reducing operating costs and increasing employee productivity.

• Enable ease of use. Because Oracle solutions are easy to learn and use, State employees require less learning time and support from IT, resulting in higher productivity for employees and IT staff alike.

Success in the State of Delaware: iGovernment in Action

In the 1990s, the State of Delaware had several “false starts” in its technology implementations, including a rollback to a mainframe legacy system after an unsuccessful implementation of a distributed solution. Among the reasons for project failures were low team morale, multiple project plans to “fit” budget, and multiple reporting structures.

To avoid these pitfalls for its newer initiatives, the State created and implemented a technology road map. To begin, the new ERP system—called Payroll Human Resources Statewide Technology (PHRST)—was converted to a state-managed project and allocated additional state resources. At the same time, the project team reorganized under a single reporting structure, governed by a full-time organizational change management team.

Delaware Employment

Link (DEL)

The state’s new online hiring system

is a comprehensive online recruit-

ment and selection system for state

employment. Since its launch in

March 2007, DEL has cut the hiring

time in half and has greatly increased

the number of quality applicants

applying for positions.

The National Association of State

Personnel Executives has chosen DEL

as a co-winner of the 2008 Eugene

Rooney Award.

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DTI’s Enterprise IT Mission

To provide collaborative solutions

for the legislative, judicial, and

executive branches of govern-

ment (including schools) to

ensure their business problems

and goals are being met. These

solutions should consider all the

opportunities for consolidation,

convergence, and connectivity

offered by innovative technology

and sound business practices, so

IT can meet or exceed demand

for services that will enhance the

lives of the citizens of Delaware.

The key to the State of Delaware’s success in achieving technology and operational excellence has been the effective use of the three iGovernment pillars: innovation, integration, and intelligence.

Innovation

Innovation is the key to efficiently and effectively delivering government services to citizens. Delaware has taken highly innovative steps in several domains, and its experience can be used as a model by other public sector organizations.

Political Leadership. In July 2001, Delaware’s governor and General Assembly created the DTI as a replacement for the Office of Information Services (OIS). Delaware’s policy makers embraced the DTI as a new organization with a true customer-service and collaborative culture that would foster centralized technology leadership statewide.

Before: Office of Information Systems

Administration

Architect Applications Technology Operations Customer

ServicesTelecom Consultancy CustomerAssurance

OrganizationalEffectiveness

Base Technology

Office of Information

Systems

After: Department of Technology and Information

Innovation in IT. Creation of the DTI has enabled the State to run the IT function more like a private enterprise. The chief information officer (CIO) is a cabinet-level position; IT employees have been placed outside the traditional civil-service pay plans and rules. Compared to the agency it replaced, the DTI has 3 domains, not 10; and the senior management team was reduced from 13 to 6. This cut salary dollars by 30 percent, or US$300,000 annually. Whereas the previous agency had outsourced mission-critical positions to contractors, the DTI brought these positions in-house where possible—initially, 13 were converted, for an annual savings of US$1 million. Finally, by setting up dedicated expert teams for ERP, project management, and change management, the DTI has successfully addressed the major causes of concern and previous failures in technology projects.

Project management. The project management organization (PMO), formed as part of the new DTI, directly addressed the cause of earlier failures in ERP implementations. The newest ERP implementation was a state-managed project with additional state resources assigned to it, a single reporting structure, and a full-time change management team. The PMO soon proved its worth with successful implementations of PeopleSoft Benefits Administration and PeopleSoft Payroll for North America, and an upgrade of PeopleSoft

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Bill BowdenExecutive Director

Strategy, Planning, and Development

Michele AcklesDeputy Principal Assistant

Elayne StarkeyChief Security Officer

Bill HickoxChief Operating Officer

Lynn Hersey-MillerChief Program Officer

Thomas JarrettCabinet Secretary

Department of Technology and InformationState Chief Information Officer

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Human Resources from Release 6.02 to 7.51. The team subsequently upgraded PeopleSoft Human Resources to Release 8.8 and is presently engaged in the rollout of PeopleSoft Time and Labor, coupled with a major implementation of PeopleSoft Financials Release 8.9. The PMO was one of the primary reasons for DTI’s success, and was bolstered by senior leadership commitment, the assignment of adequate resources, the decision to re-engineer business processes rather than customize the software packages, and effective change management.

Organizational change. A change management team was formed in 2001 to effectively prepare the organizations for successful acceptance of upcoming changes. The change management team’s objectives were to promote awareness and understanding of each project’s goals, facilitate acceptance of the stated goals, manage expectations, and ensure readiness. The team achieved these objectives by dedicating resources to organizational change management, securing visible executive sponsorship early in the project, repeating key messages early and often, involving employees in the change management process, and creating a practical transition strategy with achievable time frames.

ERP organization. The ERP Service Delivery Team was tasked with planning, organizing, and completing work requests; maintaining a production support plan; analyzing and providing solutions to complex functional issues; applying routine PeopleSoft patches, fixes, and updates; writing and maintaining technical policies and procedures; and maintaining synchronization and integration of multiple databases. A standard operating practices committee (SOPC) was charged with defining practices; assessing the impact, relevancy, and practicality of those practices; and developing, reviewing, and deploying them.

Technology. Innovations in technology implementations have served Delaware well. For example, the State Web site, www.delaware.gov, allows citizens to receive immediate e-mail notifications on school closings, environmental discharges, and many other topics. A regulation comment system allows citizens and businesses alike to receive notices of proposed regulatory changes and to make immediate online comments on the proposals. In addition, Delaware was the first state to implement technologies that would allow citizens to download content to their iPods and receive automated notices of breaking state news on those same devices. DTI is also using VoiceXML technologies to ensure that important state information is available via phone for citizens not yet comfortable with digital devices.

Strategic collaboration. The State of Delaware has leveraged its strategic relationship with Oracle to successfully implement and upgrade Oracle products. It has accomplished this through participation in various Oracle user groups, meetings, and events and by interacting with Oracle managers and technology teams.

Integration

Technology integration is key to a public agency’s ability to deliver cost-effective and efficient services. This is due not only to the fact that technical functions have much in common across organizations, but also to the highly specialized nature of technical skills required for implementing them.

Integrated decision-making. Understanding how bureaucracy can stall innovation, Delaware implemented a first-of-its-kind business case methodology for review and approval of all IT projects that were attempting to streamline procurement processes. These types of technology projects were channeled through an integrated evaluation and decision-making process, thus minimizing the chance of overlapping, conflicting, or duplicative technology implementations. The technology investment council (TIC) was assigned to assess and make recommendations on all technology-related funding, providing a forum for cross-team assessment by the DTI of new projects from all state organizations. The TIC made recommendations and communicated findings on feasibility, suitability, and compliance standards.

Integrated Web interface. The State of Delaware’s online portal provides a single integrated interface to a range of government services and information. The portal features a user-friendly, standard look and feel for all the State’s branches, departments, and agencies. Unlike many other states that have outsourced their portal management, www.delaware.gov is managed through an e-government partnership between two state agencies, the Secretary of State’s office and the DTI. This arrangement is more cost-effective and better ensures the accuracy, reliability, and security of the State’s Web site. Online services such as business license renewals, hunting and fishing licenses, and Uniform Commercial Code (UCC) and tax filings help to lower the cost of government services.

Integrated IT infrastructure. The State of Delaware has moved toward an integrated IT infrastructure, and plans to build a new data center to replace a number of smaller data

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centers and server rooms throughout the state—thus providing a more reliable, secure environment. Server virtualization is already in use in 20 different agencies and is on track for statewide use.

Integrated ERP applications. Delaware runs a single instance of PeopleSoft Enterprise for all three branches of the government (executive, legislative, and judicial), and for all 19 school districts, 17 charter schools, and two higher-education institutions.

Integrated business processes. As numerous state agencies implement enterprise solutions that integrate business functions within their individual organizations, the State is developing customized interfaces that allow the systems to exchange critical information. Today, in many instances, common business functionality is implemented as part of each enterprise solution; this can result in redundant information, as well as duplicate business processes and infrastructures. It also requires excessive ongoing technical support. Through the DTI’s Enterprise Architecture Program, the State is in a unique position to make state government more efficient, by taking this common functionality and data to a higher level of integration.

Intelligence

The intelligent use of appropriate current technology, along with implementation of thorough planning and implementation processes to ensure security and continuity of operations, are critical for the efficient functioning of any government.

Intelligent access and identity management. To ensure the trustworthiness of transactions, governments must manage the online identities of individuals, groups, and systems. They must also control how users access information and how information is exchanged among agencies or business units and between systems. The DTI has ensured secure access and effective identity management through the intelligent deployment of Oracle Identity and Access Management.

The State has implemented a three-tiered identity management architecture comprised of these Oracle Access Manager components: WebGate at the front end; WebPass at Tier 1; Identity Server, Access Server, and Policy Manager at Tier 2. Oracle Internet Directory and Oracle Virtual Directory are at Tier 3. The current deployment includes statewide benefits

Identity and Access

Management Community

Advisory Board

The DTI, as a pioneer implement-

ing Oracle Identity and Access

Management, participates on the

identity and access management

community advisory board (IAM

CAB) to share its success story.

The State of Delaware is consid-

ered as a frame of reference for

many customers who would like

to implement authorization tools.

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open enrollment for more than 30,000 employees; time and labor time/leave entry for more than 12,000 employees; Violence Against Women Act deployment, with interfaces between private businesses and the public sector, and the ability for more than 8,000 law enforcement officers and court officials to view real-time data on Protection From Abuse Orders; and International Fuel Tax Administration e-filing for motor carriers, with more than 700 state business users. Also being implemented is PeopleSoft ePay for the Office of Pensions, to serve more than 10,000 State pensioners around the world.

Efficient and intelligent technology applications. The State has implemented many systems and applications with state-of-art technologies in order to serve citizens more efficiently. Examples include:

• Delaware Employment Link (DEL). This is the State’s new online job-application tool, implemented collaboratively by HR, IT, and the budget office. Applicants create profiles, apply for multiple positions, track jobs, and are notified when new positions open up. DEL also provides a more efficient system for managers to review applicant information.

• Courts Organized to Serve (COTS). An initiative of the Delaware judiciary, created to acquire an integrated automated-case-management system for use by the courts and several partner agencies, COTS will replace several stand-alone systems and integrate all court processing within the state. Because it requires a significant amount of business process reengineering, the project has a multiphased implementation through March 2010, with civil processing implemented by August 2008 and criminal processing started at that time.

• One Stop. This business-licensing initiative enables a business owner to register and obtain business licenses with the Department of Finance and the Division of Revenue, as well as to register as a withholding agent. It also enables a business owner to register with the Department of Labor, Division of Unemployment, and the Office of Workers’ Compensation. Utilization of the service has reached 60 percent for all new registrations; it has a customer satisfaction rate of 85 percent and has enabled improvement in license-processing time.

One Stop: Business Registration

and Licensing System

One Stop, launched in February

2006, enables a business owner

to register and obtain one or

more business licenses with the

Department of Finance or the

Division of Revenue, as well as to

register as a withholding agent.

A business owner can also use

the system to register with the

Department of Labor, Division of

Unemployment, and the Office of

Workers’ Compensation (OWC).

In addition, a One Stop user can

connect to the Internal Revenue

Service (IRS) to obtain a Federal

Employer Identification Number

and to connect to the Division of

Corporations.

This initiative significantly reduces

the effort and cycle time involved

in obtaining business licenses

and registration numbers. It also

allows agencies to submit data

electronically, thereby streamlining

manual handling, data entry, and

error-handling processes.

19

• 800-MHz Radio System. The State’s digital-trunked radio system provides statewide communications for all state, county, and municipal government agencies; fire and emergency medical services; and a select number of federal agencies. The system was designed to provide 95 percent in-street coverage using a portable radio. It is currently being enhanced through the 800-MHz Next Generation, a highly complex multiyear, multimillion-dollar project, to provide in-building coverage, greater redundancy, and better interoperability with systems of surrounding jurisdictions.

Bridging the digital divide. All states face the prospect of a growing digital divide due to the unequal availability of technology and internet access for a sizable chunk of their scattered, mostly rural populations—as well as for the many homes that do not have computers. Access Delaware is a project that uses VoiceXML technology to offer citizens access to State Web sites so they can receive basic information over the phone. For example, it delivers data on official voting places, allows citizens to track their tax returns, and provides a connection to the Delaware Helpline for live assistance. It also has a new school-closure information function, which already enjoys heavy usage by parents, especially in the winter. A Department of Agriculture emergency notification application is currently being tested.

Disaster recovery and business continuity. Continuity of Operations Planning (COOP) is a statewide, multiyear, multiphase program to develop business continuity plans, which will assist leadership in making recovery decisions within an organization or within the State. The plan will ensure a standardized structure to recover the use of government services in a prioritized, systematic order in case of disaster.

Decision support and business intelligence. The State is actively looking to identify important decision points in its various branches and departments that could be better supported through technology. Corporate decision-support tools such as business intelligence will not only support decision-making more effectively, but could also lead to greater efficiency in reporting and higher transparency in governance.

One Stop (continued)

The One Stop licensing sys-

tem has allowed the OWC to

proactively screen employers

for workers’ compensation

compliance before an injury or

complaint occurs. It enables the

Division of Revenue (DOR) to

substantially reduce the cost to

process a license application. In

a paper-based system, almost 65

percent of all applications require

manual intervention after the

data entry process.

Because the data from One Stop

is fully integrated with the DOR’s

accounting system, processing

efficiency is greatly improved:

less than 20 percent of One

Stop applications require manual

intervention. This is expected

to drop to zero with future

enhancements.

In addition, DOR has been able

to dramatically reduce the number

of days it takes to issue a

20

“Ensuring the highest quality of service to our citizens and businesses through

the effective use of technology is a continuous journey, not a destination.

We are constantly looking ahead to scan and see what new technologies and

capabilities can be leveraged to improve the efficiency and quality of our

service, while lowering costs.”

Thomas Jarrett, Cabinet Secretary and Chief Information Officer,State of Delaware

One Stop (continued)

permanent business license. While

using One Stop, citizens can obtain a

temporary business license immedi-

ately, while paper-based customers

must wait an average of 29 days to

receive their permanent licenses.

Customers who use the paper-

based system also cannot obtain

a temporary license except by

applying in person at a DOR office.

Currently two years into imple-

mentation, One Stop represents

60 percent of all new business

registrations, and enables improve-

ment in license-processing time

and an overall customer satisfaction

rate of 85 percent.

The initiative has also led to these

awards: NASCIO recognition in

2007, Governor’s Team Award

finalist in 2006, and ASQ Regional

Team Award finalist 2006.

Conclusion: Transformation Powered by Technology, Recognized by Industry

The State of Delaware has won a significant number of awards recognizing its technological innovations and the enhanced efficiency and effectiveness that have been the result. The State is now well-recognized as a technology leader, especially among state and local governments.

The State has already completed 15 projects in its first year of the initiative, and has 25 active projects underway. Eight projects have budgets of more than US$1 million, including the 800-MHz First Responder Community project and projects for the Department of Finance, Office of Management and Budget, Division of Corporations, Delaware State Court system, Division of Motor Vehicles, and Department of Health and Social Services.

The State’s ERP project is presently replacing two mainframe legacy financial systems and is upgrading Delaware’s payroll/HR system—these are expected to be completed in 2009. The State is already looking at the next wave of transformational innovations. Some areas where the State and Oracle are likely to collaborate to achieve further business transformation and to continue to deliver transformational government are

• Oracle Fusion Middleware

• Business intelligence and decision support

• Procurement and customer relationship management (CRM)

With its technology-enabled clarity of vision, willingness and commitment to change, realigned strategic culture, and open and honest communication between all stakeholders, the State of Delaware today can serve as a model for other states and public sector entities as well as private enterprises.

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Authors: Thomas Jarrett, Cabinet Secretary and Chief Information Officer, State of Delaware; Harry Ghuman, Group Vice President, Oracle Insight and Industry Marketing, Oracle Corporation; P.N. Narayanan, Senior Project Manager, Department of Technology and Information, State of Delaware; and Satish Prasad, Director, Oracle Insight and Industry Strategy, Oracle Corporation

This case study contains forward-looking statements as defined in Section 27A of the Securities Act of 1933 and Section21E of the Securities Exchange Act of 1934. Such forward-looking statements are based upon State of Delaware management’s current expectations, estimates, beliefs, assumptions, and projections about State of Delaware’s business and industry. Words such as “anticipates,” “expects,” “intends,” “plans,” “predicts,” “believes,” “seeks,” “estimates,” “may,” “will,” “should,” “would,” “potential,” “continue,” and variations of these words (or negatives of these words) or similar expressions, are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections, or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties, and assumptions that are difficult to predict. Therefore, our actual results and State of Delaware’s could differ materially and adversely from those expressed in any forward-looking statements as a result of various risk factors. Important risk factors that may cause such material differences for State of Delaware, include, but are not limited to: the anticipated benefits are not realized, the macro and micro economic slowdown; the ability of our customers to manage operational changes; the loss of a key customer; the qualification, availability and pricing of competing products and technologies and the resulting effects on sales and pricing of our products; the effectiveness of State of Delaware’s expense and product cost control and reduction efforts; the risks inherent in acquisitions; changing relationships with customers, suppliers, and strategic partners; potential contractual, employment, and intellectual property issues; risks of not securing regulatory approvals; accounting treatment and charges; and the risks that the acquisition cannot be completed successfully, or that the anticipated benefits of the acquisition are not realized); intellectual property disputes, customer indemnification claims, and other litigation risks; State of Delaware’s ability to develop, market, and transition to volume production new products and technologies in a timely manner, as well as other risk factors. These forward-looking statements are made only as of the date of this communication and State of Delaware undertakes no obligation to update or revise these forward-looking statements.